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A Study of Student Loans 
individuals stood ready to make good the losses. There is no question but 
that such a venture on the part of financial institutions is sound. Trust 
Companies should be well adapted to handle Student loans. 
There is a question, however, as to whether it would be wise for 
educational institutions to turn over loan funds to financial institutions 
for administration. Many of the funds are so tied up that Provision must 
be made to administer them at the institution and if this is done machinery 
may as well be developed to administer all of the Student loans. Institu 
tions, Colleges, and universities must make provision to handle the funds 
intrusted to them for Student loans, and develop higher Standards and 
more efficiency in their administration. Banks and trust Companies 
are well adapted to loaning money to students and due to the legal restric- 
tions placed upon them, there is little danger that they will go to extremes 
in this matter. 
24. Philanthropie and Semi-Philanthropic Organizations 
The administration of Student loans by such organizations as fall 
under this dass is much to be desired. Organizations such as the Harmon 
Foundation can well administer funds to students and in that way be of 
great service to higher education. Also, since they are not hampered by 
institutional views as are Colleges and universities, they can raise the 
Standard in loan administration and thus lead the way to more business- 
like methods of administering all Student loan funds. 
Colleges and universities must handle at least some of the Student 
loans. They need to work out new policies and develop a System for the 
administration of Student loans. Such policies and System can be built 
by borrowing the effective elements: in Systems now in use; from the field 
of commercial and investment banking; in such plans as the Harmon 
Plan and some used in Europe; and by making use of the principles herein 
set forth which are the results of an inquiry conducted by the Student 
Loan Information Bureau.